The Howard government promised to rise in the private health care rebate from 30% to 35% for people over 65 and 40% for people over 70. However between 2001 and 2004 there has been a decrease in private health insurance for people under 55 by 4.8%, while people over 55 have increased 13.7%. Prices for private health care is eight times higher for 80 compared to 40 year olds, the rebate will only increase prices further. As such the government’s private health care rebate for older people is focusing on the wrong demographic.